Sports wagering sites are one step closer to introducing in Vermont after pro-wagering legislation passed another Senate committee.

The Vermont Senate's financing committee reunited on Tuesday and approved a changed variation of House Bill 127, legislation that would bring legal sports wagering to the state through mobile apps and websites.

While Vermont is the only New England state that has not legalized sports wagering, H. 127 would alter that and put the state's Department of Liquor and Lottery in charge of occasion wagering once Vermont sports betting is legislated. The department would perform a competitive bidding procedure to select two to 6 operators of mobile sportsbooks to take wagers in the state, although it could pick one or no operators if there are not sufficient worthy candidates.

Bookmakers would need to turn over a share of the earnings from sports wagering to Vermont, and the costs requires that cut to be no less than 20% of adjusted invoices. Operators will also need to shell out a yearly cost.

Fee-faraw

The Senate finance committee had actually been tinkering with the idea of tweaking that charge structure. When H. 127 arrived in committee, the legislation proposed that a single operator would have to pay $550,000 a year, while two operators would trigger payments of $412,500, 3 would $366,666, 4 $343,750, 5 $330,000, and six $320,833.

Senators then hung out last week considering other fee structures before settling Tuesday on an upfront payment of $550,000, which would cover the expense of regulating the market.

It will depend on the Department of Liquor and Lottery to negotiate with an operator over the length of their agreement and when they would need to pay the $550,000 again. Nevertheless, the modification approved Tuesday states bookmakers will not be charged more than once in any three-year duration.

Tracking modifications

Other changes approved by the finance committee on Tuesday include tweaking the name of a "Sports Wagering Fund," where the costs and profits from sports wagering will be transferred, to the "Sports Wagering Enterprise Fund."

Another modification the financing committee made was to make sure earnings of sports betting done within the state can be taxed, comparable to what's done with lottery profits.

If H. 127 remains modified, it needs to go back to Vermont's Legislature when the Senate is completed, as the former chamber has actually currently passed the costs and would need to accept the modifications. That said, Tuesday's vote pushes the legal sports betting bill closer to the finish line.